The People’s Insurance Company (Group) of China Limited (PICC GROUP, Stock Code: 01339) has released the Terms of Reference governing its Board of Directors’ Audit Committee. These provisions aim to refine supervisory responsibilities over financial matters, internal controls, and audit operations, thereby strengthening protection of shareholder interests.
The document specifies that the Audit Committee shall be composed of non-senior management directors, with a majority being independent. At least one member among the independent directors must possess accounting expertise. The chairman of the committee must also be an independent director with an accounting background.
The committee is tasked with reviewing financial disclosures, hiring and evaluating external auditors, overseeing internal audit activities, and coordinating any required special inspections. The Terms of Reference also highlight the committee’s authority to call for extraordinary board or shareholder meetings when deemed necessary, as well as its duty to respond to red flags related to financial and operational irregularities. The committee has permission to engage third-party agencies for investigation and consultation, with costs covered by the company.
The document sets a requirement for the Audit Committee to hold meetings at least once per quarter. In addition, it outlines related procedures for meeting notifications, voting, record keeping, and confidentiality obligations. Any resolutions reached by the committee will be submitted to the Board of Directors for further deliberation. These Terms of Reference are available on the company’s website and regulatory authorities’ platforms.
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